Contemporary trends on global corporate ESG bond market
https://doi.org/10.35854/1998-1627-2023-4-381-388
Abstract
Aim. The presented study aims to identify current trends in the global corporate bond market with environmental, social, and management objectives of the issuance of ESG bond and to assess the prospects for their development.
Tasks. The author analyzes the segments of the global ESG bond market; determines the causes of the emerging trends and their impact on the state of global ESG financing.
Methods. This study uses general scientific methods of cognition, in particular induction and deduction, synthesis, comparative and retrospective analysis. The fundamental regulatory documents of ESG bond taxonomy are investigated, and statistics from representative sources are analyzed. The latter include International Capital Market Association, SPGlobal, Barclays, Goldman Sachs, Refinitiv, and Climate Bond Initiative.
Results. Based on the conducted research, the reasons for the active growth in 2021 and the slowdown in the development of the global ESG bond market in 2022 are established, and its short-term prospects are assessed. The prospects are systematized according to ESG bond varieties. Analysis of the mutual influence of global trends on the state of the global ESG bond market indicates the prevalence of external factors.
Conclusions. According to the results of the analysis, the ESG bond toolkit seems to be investment-relevant. In 2022, major discussions regarding global ESG debt revolved around market quality and potential greenwashing. Intensive measures are taken in these areas at the macro and micro levels. The volume of ESG bond issuance in 2023 should be restored as interest rates in developed countries stabilize and global inflation rates decrease. Experts remain positive in their expectations and forecasts for 2023, but the quality of green bond and bond related to sustainable development is alarming.
About the Author
O. V. Khmyz
Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation (MGIMO MFA of Russia)
Russian Federation
Russian Federation
Olga V. Khmyz, PhD in Economics, Associate Professor, Associate Professor at the International Finance Department
76 Vernadskogo Ave., Moscow 119454
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Review
For citations:
Khmyz O.V. Contemporary trends on global corporate ESG bond market. Economics and Management. 2023;29(4):381-388. (In Russ.) https://doi.org/10.35854/1998-1627-2023-4-381-388
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